Houston Pumps Recently Reported $172,500 of Sales,$140,500 of Operating Costs

Houston Pumps recently reported $172,500 of sales,$140,500 of operating costs other than depreciation,and $9,250 of depreciation.The company had $35,250 of outstanding bonds that carry a 6.75% interest rate,and its federal-plus-state income tax rate was 25%.In order to sustain its operations and thus generate future sales and cash flows,the firm was required to spend $15,250 to buy new fixed assets and to invest $6,850 in net operating working capital.What was the firm's free cash flow?

A) $4,213
B) $1,860
C) $5,354
D) $2,286
E) $1,978